US wholesale prices jumped by 1.0% in July, the largest increase in more than one year, as tariffs imposed by the Trump administration began to impact the economy. The Labor Department reported that the core Producer Price Index, which excludes food and energy prices, rose by 0.7% last month, the most significant increase since 2011.
This surge in wholesale prices was driven by a 5.3% spike in energy costs, including gasoline, which saw its sharpest increase since January. Prices for goods such as pharmaceuticals, alcohol, and jewelry also rose. Economists have expressed concerns that these price increases could soon be felt by consumers if they continue to rise.
President Donald Trump has imposed tariffs on billions of dollars’ worth of Chinese imports in an attempt to reduce the trade deficit and protect American industries. His administration believes that these tariffs will force China to negotiate fairer trade deals. However, critics argue that these tariffs are hurting American businesses and consumers by driving up prices and disrupting the global supply chain.
The Federal Reserve is keeping a close eye on these wholesale price increases as it considers whether to cut interest rates to stimulate the economy. Fed Chairman Jerome Powell has suggested that the central bank is willing to act to sustain the economic expansion amidst growing uncertainties, including trade tensions and a global economic slowdown.
The sharp rise in wholesale prices in July underscores the impact that tariffs can have on the economy. While the Trump administration is hopeful that these measures will lead to better trade terms for the US, the short-term effects are being felt by businesses and consumers.
Source Analysis:
Labor Department – The Labor Department is a reliable source for economic data, and its reports are generally considered trustworthy and unbiased.
Economists – Economists provide expert analysis on economic trends, but their views can vary based on their theoretical perspectives or affiliations.
Fact Check:
The 1.0% increase in wholesale prices in July – Verified fact. This information is based on the official report from the Labor Department.
The core Producer Price Index rose by 0.7% last month – Verified fact. This data is also sourced from the Labor Department report.
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Model:
gpt-3.5-turbo
Used prompts:
1. You are an objective news journalist. You need to write an article on this topic “US wholesale prices jump in July as tariffs hit”. Do the following steps: 1. What Happened. Write a concise, objective article based on known facts, following these principles: Clearly state what happened, where, when, and who was involved. Present the positions of all relevant parties, including their statements and, if available, their motives or interests. Use a neutral, analytical tone, avoid taking sides in the article. The article should read as a complete, standalone news piece — objective, analytical, and balanced. Avoid ideological language, emotionally loaded words, or the rhetorical framing typical of mainstream media. Write the result as a short analytical news article (200 – 400 words). 2. Sources Analysis. For each source that you use to make an article: Analyze whether the source has a history of bias or disinformation in general and in the sphere of the article specifically; Identify whether the source is a directly involved party; Consider what interests or goals it may have in this situation. Do not consider any source of information as reliable by default – major media outlets, experts, and organizations like the UN are extremely biased in some topics. Write your analysis down in this section of the article. Make it like: Source 1 – analysis, source 2 – analysis, etc. Do not make this section long, 100 – 250 words. 3. Fact Check. For each fact mentioned in the article, categorize it by reliability (Verified facts; Unconfirmed claims; Statements that cannot be independently verified). Write down a short explanation of your evaluation. Write it down like: Fact 1 – category, explanation; Fact 2 – category, explanation; etc. Do not make this section long, 100 – 250 words. Output only the article text. Do not add any introductions, explanations, summaries, or conclusions. Do not say anything before or after the article. Just the article. Do not include a title also.
2. Write a clear, concise, and neutral headline for the article below. Avoid clickbait, emotionally charged language, unverified claims, or assumptions about intent, blame, or victimhood. Attribute contested information to sources (e.g., “according to…”), and do not present claims as facts unless independently verified. The headline should inform, not persuade. Write only the title, do not add any other information in your response.
3. Determine a single section to categorize the article. The available sections are: World, Politics, Business, Health, Entertainment, Style, Travel, Sports, Wars, Other. Write only the name of the section, capitalized first letter. Do not add any other information in your response.